However, net sales decreased 12% to €1.1 mill from €1.2 mill. The cash flow from operating activities was €189 mill in 3Q16.
For the first nine months of this year, the order intake increased 2% to €3.6 mill from €3.5 mill during the same period last year.
Net sales decreased 6% to €3.2 mill, while the cash flow from operating activities was €378 mill. The orderbook at the end of the period decreased 2% to €5 mill.
Wärtsilä revised its prospects for the year on 12th October, 2016 saying that it expected its net sales to decline by around 5% and its profitability (comparable operating result as a percent of net sales) to be around 12%. Previously, Wärtsilä expected its net sales to grow by 0-5% and its profitability to be 12.5-13%.
Jaakko Eskola, Wärtsilä president and CEO, said; "The third quarter of 2016 developed largely in line with our expectations. As anticipated, the concentration of deliveries towards the end of the year resulted in lower sales, which burdened our operating result. We continue to focus on increasing efficiency and flexibility within our organisation.
“Although service activity has stabilised at a high level, we remain confident in the positive long-term drivers. In the equipment markets, the demand for new vessels was weak, reflecting the challenges related to overcapacity and low earnings. Nevertheless, improved sentiment in the power generation markets has contributed to the growth in overall order intake. I am pleased to note that a solid project pipeline supports continued momentum in our Energy Solutions business.
“Despite the growth in order intake, lower than anticipated power plant deliveries in the current year has caused us to adjust our guidance for 2016. We now expect a small decline in sales, and estimate profitability to be around 12%," he explained.
The outlook for the shipping and shipbuilding markets remains challenging, the company said. Overcapacity and weak earnings continue to limit the demand for new vessels in the merchant segment, while low oil prices are impacting investments in offshore exploration and development.
In the gas carrier markets, the demand for both LNG and LPG carriers remains under pressure, due to the low oil and gas prices and supply/demand imbalances.
The service market outlook remains solid with growth opportunities in selected regions and segments. An increase in the installed base of medium-speed engines and propulsion equipment, as well as the shift to gas based technology, offsets the slower service demand for older installations and the uncertainty regarding short-term demand development in the merchant marine segment. The service outlook for gas-fuelled vessels remains favourable.
Customers in both the marine and power plant markets continue to show interest in long-term service agreements, Wärtsilä said.